Variable Frequency Drives Market - By Voltage, By Drive (AC, DC, Servo), By Application (Pump, Fan, Conveyor, Compressor, Extruder), By End-Use (Oil & Gas, Power Generation, Mining & Metals, Pulp & Paper, Marine) & Forecast, 2024 - 2032

Variable Frequency Drives Market Size

Variable Frequency Drives Market was estimated at USD 21.1 billion in 2023 and is anticipated to observe a CAGR of 4.4% between 2024 and 2032. Increasing investment for the development of industrial infrastructure, rising demand for energy efficient systems and stringent regulations pertaining toward energy consumption are shaping the business dynamics.
 

For instance, in April 2024, the European Commission permitted a USD 2.4 billion initiative to help the decarbonization of industrial production in Germany, in line with the Green Deal Industrial Plan and intends to accelerate the green transition. Growing automation across various industrial applications along with shifting inclination toward adoption of enhanced technological systems for precise speed, motor, and process control, will further augment the industry landscape.
 

Variable Frequency Drives Market Trends

Variable frequency drives industry is set to witness substantial growth owing to increasing focus toward energy efficiency, rising demand for automation across industries and elevating demand for reliable and efficient motor control solutions. For instance, In March 2024, China intensified its energy intensity target for 2024 to align with its climate plan, ending in 2025. The National Development and Reform Commission mentioned challenges in meeting expectations due to rapid growth in industrial and civilian energy consumption. Furthermore, steadily expanding clean power generation, increased industrial investments and expenditure for their development, favorable governmental norms and policies, and the availability of cost-effective products further stimulating the business dynamics.
 

Variable Frequency Drives Market Analysis

The low voltage drives market is set to grow to surpass USD 27 billion by 2032. The growing emphasis on industrial automation, energy efficiency, and technological improvements are all expected to have an impact on industry growth. Rising need for efficient and cost-effective solutions across a wide range of sectors and applications, as well as an increased emphasis on energy efficiency, will drive up product demand. Government programs and incentives that encourage energy efficiency and provide financial incentives to manufacturers who invest in these technologies, further shaping the low voltage drive industry landscape.
 

AC Drives segment is set to observe over 4.2% CAGR between 2024 and 2032. Ongoing technological enhancements in AC drives, including the introduction of smart features, IoT (internet of things) capabilities and, improve performance and functionality, have led to increased product demand. Flourishing investments across industrial automation along with implementing Industry 4.0 with enhanced robotics and technologies will boost the business landscape. Moreover, the scalability and adaptability of these drives make them appropriate for a wide range of applications, including small-scale operations and large industrial facilities., which further augmenting the AC drives market dynamics.
 

Asia Pacific variable frequency drives market is set to surpass USD 14 billion by 2032. Increasing clean power generation, flourishing industrial investments for their development, and shifting focus toward reducing energy consumption has influenced the industry dynamics Favorable policies aimed at accelerating industrial development and implementation of Industry 4.0, which includes automation across numerous manufacturing processes, will enhance the business outlook.
 

For instance, the Indian government introduces UNNATI Scheme 2024, aiming to revolutionize the industry and service sectors serving as a catalyst for regional progress, fostering development by incentivizing industrial expansion. Favorable initiatives to enhance the energy efficiency and rising adoption new technologies for improving the manufacturing processes will complement the Asia Pacific variable frequency drives business landscape.
 

Variable Frequency Drives Market Share

Major manufacturers operating in the variable frequency drives industry are focusing on forming strategic agreements, partnerships, collaborations, and introducing innovative technologies to enhance their competitiveness over the others. Key players including ABB, Fuji Electric Co. Ltd., Siemens, GE Vernova, Mitsubishi Electric Corporation, and Yaskawa Electric Corporation, among other, holds majority of the market share.
 

Variable Frequency Drives Market Companies

Major manufacturers operating across the industry consists of:

• ABB
• Beckhoff Automation
• Bosch Rexroth Corporation
• Danfoss
• Emerson Electric Co.
• Eaton
• Fuji Electric Co., Ltd.
• GE Vernova
• Hiconics Eco-energy Technology Co., Ltd.
• Hitachi Industrial Equipment Systems Co., Ltd.
• Honeywell International, Inc.
• Invertek Drives Ltd.
• Johnson Controls
• Mitsubishi Electric Corporation
• Nidec Motor Corporation
• Rockwell Automation
• Schneider Electric
• Siemens
• WEG
• YASKAWA ELECTRIC CORPORATION
   

Variable Frequency Drives Industry News

• In April 2024, Rockwell Automation expanded the application of its PowerFlex medium voltage drives for permanent magnet motors. These units support the applications with high-speed, having the output frequency of 120 Hz and voltage levels from 2.3 to 11 kV. PowerFlex drives are suitable for manufacturers across sectors including oil & gas, paper, HVAC, metals among others with PM motor solutions.
   
• In April 2024, Applied Motion Products, Inc. unveiled low voltage servo drives comprising of MDX+ series with an output of 200 W to 500 W. The compact design of these units is 20% smaller than the standalone solutions, which is advantageous for installations with limited space. These servo systems are configured and debugged using Luna software, facilitating setup, tuning, and troubleshooting. Luna enables seamless communication with the drive via USB, ensuring rapid and dependable operations.
   

The variable frequency drives market research report includes in-depth coverage of the industry with estimates & forecast in terms of “‘000 Units and USD Million” from 2021 to 2032 for the following segments:

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Market, By Voltage

• Low
• Medium

Market, By Drive

• AC
• DC
• Servo

Market, By Application

• Pump
• Fan
• Conveyor
• Compressor
• Extruder
• Others

Market, By End-Use

• Oil & Gas
• Power generation
• Mining & metals
• Pulp & paper
• Marine
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Denmark
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
• Latin America
  • Brazil
  • Argentina